Correlation Between Janison Education and MA Financial
Can any of the company-specific risk be diversified away by investing in both Janison Education and MA Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Janison Education and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janison Education Group and MA Financial Group, you can compare the effects of market volatilities on Janison Education and MA Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Janison Education with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janison Education and MA Financial.
Diversification Opportunities for Janison Education and MA Financial
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Janison and MAF is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Janison Education Group and MA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MA Financial Group and Janison Education is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Janison Education Group are associated (or correlated) with MA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MA Financial Group has no effect on the direction of Janison Education i.e., Janison Education and MA Financial go up and down completely randomly.
Pair Corralation between Janison Education and MA Financial
Assuming the 90 days trading horizon Janison Education Group is expected to generate 2.37 times more return on investment than MA Financial. However, Janison Education is 2.37 times more volatile than MA Financial Group. It trades about -0.09 of its potential returns per unit of risk. MA Financial Group is currently generating about -0.32 per unit of risk. If you would invest 21.00 in Janison Education Group on September 19, 2024 and sell it today you would lose (2.00) from holding Janison Education Group or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janison Education Group vs. MA Financial Group
Performance |
| Timeline |
| Janison Education |
| MA Financial Group |
Janison Education and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janison Education and MA Financial
The main advantage of trading using opposite Janison Education and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janison Education position performs unexpectedly, MA Financial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MA Financial will offset losses from the drop in MA Financial's long position.| Janison Education vs. Vulcan Steel | Janison Education vs. G8 Education | Janison Education vs. M3 Mining | Janison Education vs. Red Hill Iron |
| MA Financial vs. Ras Technology Holdings | MA Financial vs. DY6 Metals | MA Financial vs. G8 Education | MA Financial vs. Janison Education Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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